- The regulator claims no Coindeal transaction ever took place.
- The SEC said that the defendants collectively stole millions of dollars of investor monies.
On Wednesday, the U.S. Securities and Exchange Commission (SEC) said that it has filed charges against the eight people involved in the $45 million cryptocurrency Ponzi scam Coindeal. The securities commission described Coindeal as a blatant and far-reaching unregistered offering scam undertaken between at least 2018 and 2022.
It was reported by the SEC that Coindeal’s creator Neil Chandran and promoters Garry Davidson, Michael Glaspie, Amy Mossel, and Linda Knott “falsely claimed that investors could generate extravagant returns. By investing in a blockchain technology called Coindeal. That would be sold for trillions of dollars to a group of prominent and wealthy buyers.”
No Transaction Ever Took Place
While dividends were promised to investors, the regulator claims no Coindeal transaction ever took place. Moreover, the SEC said that the defendants collectively stole millions of dollars of investor monies for personal use. And that one of the plaintiffs, Chandran, used customer cash to buy automobiles, real estate, and a boat.
AEO Publishing Inc., Banner Co-Op Inc., and Bannersgo LLC have also been charged by the securities regulator for their roles in the fraudulent crypto investment scheme.
Regional Director of the SEC in Chicago Daniel Gregus said:
“We allege the defendants falsely claimed access to valuable blockchain technology and that the imminent sale of the technology would generate investment returns of more than 500,000 times for investors.”
Chandran was accused by the US Department of Justice (DOJ) in June of last year for his involvement in the Coindeal cryptocurrency fraud scam. He was charged with three counts of wire fraud and two charges of monetary transaction in illicit profits.